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Motor Fuel Consumption Tax/Points and Rewards System.

PostPosted:Wed Jul 16, 2008 7:32 pm
by TM2000
Hello Everyone. Recently Charles Krauthammer wrote a letter in which I believe he made some very good points. http://www.ajc.com/printedition/content/printedition/2008/06/06/krauthammered.html

That being said I will get on to my idea.

Okay. I have heard many people argue that our income tax system should be replaced with a consumption based sales tax. Well, under Krauthammer's idea that is what this tax would be, one on consumption and not income. The rich, who drive their sports cars, Escalades, and Land Rovers, would still be the ones paying the most in taxes under this system. And it would not come to them in the mail, they would come to it when they visit the pump.

Okay now for the points and rewards system idea. I think most of us agree that high fuel prices are bad for the economy but at the same time agree that conservation is a good thing. Thus this system would reward conservation and tax consumption. Lets say you have a transit users card that you use every time you board a bus or enter a metro rail station. You earn points based on the number of trips and maybe even for distance. You can use those points when you visit the pump to get a reduced motor fuel tax. We could also use the extra revenue to develop a more sophisticated system of infrastructure one that includes more HOV lanes, more traffic cameras, more transit systems, more truck only lanes, etc. If we had more options than just driving then everybody would benefit.

Also in order to keep the price of good from skyrocketing we could tax gasoline higher than diesel fuel.